In a striking display of disparity, Pakistan’s salaried class paid a record-breaking Rs545 billion in income tax during the fiscal year 2024–25 — more than triple the contribution of exporters and a staggering eight times more than retailers, according to official data from the Federal Board of Revenue (FBR).
Despite earning in foreign currency, exporters contributed only Rs180 billion, while retailers — many of whom enjoy political backing — paid just Rs62 billion under sections 236G and 236H of the Income Tax Ordinance. Combined, these two groups paid less than half of what salaried individuals contributed.
This sharp imbalance has raised eyebrows, especially as the Tajir Dost Scheme (TDS), aimed at integrating more retailers into the tax net, has yet to deliver tangible results. The FBR has now hinted at tightening enforcement measures to bring non-compliant segments, particularly retailers, into the formal economy.
Compared to the previous fiscal year (2023–24), salaried individuals paid Rs178 billion more, marking a significant increase from Rs367 billion to Rs545 billion in just one year.
FBR Member Tax Policy, Dr. Najeeb Memon, acknowledged the burden on salaried workers and pointed out that relief has been introduced for low- and middle-income earners. Tax rates for those earning between Rs600,000 to Rs1.2 million annually have been cut from 5% to 1%, and those earning between Rs1.2 million to Rs2.2 million will now pay 11% instead of 15%. This relief is expected to ease the pressure on this heavily taxed group by about Rs50 billion in the current fiscal year.
Dr. Memon further stated that upcoming enforcement actions will make it harder for potential tax evaders to stay outside the system — especially those making large transactions like buying property, depositing funds, or purchasing vehicles.
The situation underscores a long-standing concern: while salaried citizens continue to carry the heaviest load in terms of direct taxation, other influential and well-connected sectors remain significantly under-taxed.
